Tokyo Falls Out of Global Top 10 of Most Expensive Cities

Commercial and residential buildings stand in Tokyo, Japan, on June 1.

Bloomberg News

Japan has seen a record number of tourists visit the country in recent years as a weaker yen makes trips more affordable. The fall in the currency also means Japan is now a relatively cheaper place to live compared with other cities across the globe.

Human resources consulting firm Mercer says Tokyo has dropped out of the top 10 in its annual cost of living survey for expats. Japan’s capital fell to 11th place from last year’s 7th, thanks to the depreciation of the yen against the dollar.

The annual survey compared the cost of more than 200 items and factors including housing, transportation, entertainment and food, using New York as the base city.

The list was topped by Luanda, Angola, for the third straight year because of the high cost of imported goods and safe living conditions there.

Other cities in Japan also fell down the list. Osaka dropped to 32nd spot from 23rd last year, while Nagoya fell 40 spots to rank 80th, behind Bandar Seri Begawan in Brunei.

Just a few years ago, Tokyo, Osaka and Nagoya were all in the top 10 on the annual global ranking list. Now the cities are not even included in the top 5 of the regional list, currently comprising Hong Kong, Singapore, Shanghai, Beijing and Seoul.